Make sense of your finances

Reality – money comes and goes; more important is how you manage your money. It was a long time ago when I learned how money works; rule 72 was an eye-opening. Rule 72 is an easy way to determine how long it takes to double your funds; it is based on an annual percentage divided by 72, which will be equal to the number of years it takes to see real overtime growth. That is, say, an investment of 1 thousand Annual return is 1.0%, which is more than what your bank now pays; it will take 72 years for your funds to double. (72/1 = 72 years). The money will grow to only 2,000 in 72 years.

Now, taking the same 1K that is properly invested in the financial markets at 10%, which has been the average in the past, in order for your funds to double, it will take 7.2 years. So in that 72-year period you would have 10 doubling periods or $ 955,594 for just under $ 1 million; not bad for 1K. Have you ever wondered why local and national banks have a plush atmosphere and a marble floor? We must learn to manage our finances; budgeting, costs and savings; it’s all part of the stewards ’wisdom and responsibility.

Over the years, many of us have made mistakes with money; let it be through long credit, poor financial management, burial in debt; either by kidnapping various financial advisers or a fraudulent artist. To understand our finances, we need discipline to do the right things and refrain from frivolous pointless bad habits. In the last few weeks with this Crown virus pandemic, I’ve seen people foolishly spend their money and make money. buying more than what he would normally need any day. The world is not coming to an end. Spread your funds on the table and get everything you need to make ends meet. No need for a crisis to draw our attention to our finances, this should be a year-round process of how to properly manage money.

It is at such times that it draws our attention to slow down and think things through before acting impulsively. Also, this is another way God draws our attention; for those of us who believe that He is the true and living God. He is in control of the whole situation and has the whole world in his hands. The goal of each person, if he or she is aware of how to manage his or her finances, should include, but not be limited to: purchasing life and health insurance products, having legitimate sources of income through diversification of multiple real estate assets, have a basic understanding of how buy low and sell high or at least break-even; or make a profit at any business venture you can make. Last but not least, you are advised by proven reputable professional financial advisors, “to help manage large financial portfolios”.

The truth behind money is knowing how to manage it properly, living within our means, and peace of mind, soul, and spirit. We need to learn from our mistakes and be a blessing to others who may lack both the finances and the knowledge of how to have more than enough. Share your education with others to help them change their thinking from a mentality that thinks about poverty, and accordingly increase their wealth. Time will allow your money to start working for you; instead of working for money!

Decentralized Finance (DeFi) at Ethereum: The Future of Finance?

Decentralized finance, or “DeFi” for short, has taken over the world of crypto and blockchain. However, its recent renaissance masks its roots in the bubble era of 2017. While everyone and their dog were doing the “Initial Coin Offer” or ICO, few saw the potential of the blockchain far beyond the rapid rise in value. These pioneers envisioned a world in which financial supplements from trade to savings, banking and insurance would be possible just on the blockchain without intermediaries.

To understand the potential of this revolution, imagine if you had access to a savings account that gives 10% in dollars a year, but without a bank and virtually risk-free funds. Imagine you can sell crop insurance to a farmer in Ghana who sits in your office in Tokyo. Imagine being able to be a marketer and earn a percentage of the fees that each Citadel would like. Sounds too good to be true? This is not the case. This future is already here.

DeFi building blocks

There are a few basic DeFi building blocks that you need to know before moving forward:

  • Automated manufacture or exchange of one asset for another without trust without an intermediary and clearing house.

  • Lending with excessive collateral or the ability to “use your assets” for traders, speculators and long-term owners.

  • Stablecoil or algorithmic assets that track the price of the underlying balance without centralization or provisioning with physical assets.

Understanding how DeFi is done

Machine guns are often used in DeFi because they mimic traditional fiat currencies such as USD. This is an important event because the history of the crypt shows how changeable things are. Staibcoins, such as DAI, are designed to track the value of the USD with small deviations even during strong bear markets, that is, even if the value of the crypt collapses like the bear market of 2018-2020.

Lending protocols are an interesting development that is usually built on the basis of stable coins. Imagine if you could close your assets for a million dollars and then borrow from them in stable coins. The protocol will automatically sell your assets if you do not repay the loan, if your collateral is no longer enough.

Automated market makers form the basis of the entire DeFi ecosystem. Without this you are stuck with the old financial system where you need to trust your broker, clearing exchange or exchange. Automated market makers, or AMM for short, allow you to trade one asset for another based on the reserve of both assets in its pools. Price detection occurs through external arbitrators. Liquidity is pooled based on other people’s assets and they gain access to trading fees.

You can now get a wide range of assets in the Ethereum ecosystem, without having to interact with the traditional financial world. You can make money by borrowing assets or being a market maker.

For developing countries, this is a surprising innovation, as they now have access to a full set of financial systems in the developed world without barriers to entry.